How do I start saving towards my future and further on to when I retire?
I'm looking far ahead into the future because I know what it's like to not have enough at a later age. I'm a full-time undergraduate student, and currently devoting all my time and effort into school, so I don't have enough time to spare for a part time job. However, what are some other ways to prepare for your future through saving money, and spending less? What are your opinions on bonds and investing? I'm worried I won't have enough money to support my family when I start one, or when I retire. savings
Its never too early. Even if you are in your 20's and starting your career, if your company offers you a pension scheme then jump on it. The longer you wait the less you will have during your retirement. We are living longer, and when you retire at 65 you will have a number of years ahead of you to look forward to. Getting a jump start on that pension fund is the best thing you can do.
Most businesses will support you in financial investments and will have someone to talk to you about pensions. Talk to your parents or friends that are working, and get advice from them of firms in the area that they use for financial investments. Talk to your bank too about long term savings plans (usually they have a higher interest rate over a 5-7 year period to help you save towards your home deposit or your family).
Try to stay away from the stock market however as you could loose everything there.
Once you have that emergency money in place, then you can start thinking about investing for your future - 401k (for retirement), Roth IRA (for retirement), 529 College Savings (for your children), or an investment account (buying a house, car, etc). If you cannot resist the allure of the stock market - do NOT invest in a single company. It's best to buy a broadly diversified index mutual fund (for example a Russell 3000 index mutual fund) with a low expense ratio. If you do invest in the stock/bond market, plan to stay invested for at least 12 months so you don't have to pay short term capital gains taxes to Uncle Sam. If you hold it for longer than 12 months you will still pay taxes on your earnings, but it will be at the lower long term capital gains rate.
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